Pune-based Kalyani Steels delivered steady June-quarter results with consolidated net profit rising 10.63% year-on-year to ₹68.24 crore, compared with ₹61.68 crore in the corresponding quarter last year. According to the latest financial data, revenue from operations increased 4.92% to ₹464.58 crore from ₹442.80 crore a year ago. At the operating level, profit before tax (PBT) increased 10.54% YoY to ₹91.83 crore, supported by other income of ₹14.94 crore. The bottom-line expansion of 10.63% consolidated net profit is highly encouraging, especially after the company faced unexpected shutdown risks at its Ginigera plant.
The company's cost management showed mixed trends during the quarter. Total expenses rose 3.63% YoY to ₹388.54 crore in Q1 FY27 from ₹374.92 crore in Q1 FY26. During the quarter, the cost of raw materials consumed increased 6% YoY to ₹239.57 crore, while employee benefit expenses rose 8.33% YoY to ₹24.05 crore. Despite higher raw material costs, the company maintained operational efficiency and achieved the overall profit growth through improved revenue generation and operational leverage.
Following the positive Q1 results, shares of Kalyani Steels fell 3.63% to ₹849.20 on the BSE after the earnings announcement, as reported by Business Standard. The stock movement reflects mixed investor sentiment, with the positive financial performance offset by the decline in share price. The market reaction suggests some profit-taking after the recent operational improvements and regulatory clearances.
A major positive development for Kalyani Steels was the resumption of manufacturing operations at the Ginigera plant on July 17, 2026, after the CPCB withdrew previous closure directives. This operational recovery removes a major regulatory discount on the stock and enables full production capacity. The company had earlier resolved past related party transactions approvals disputes by paying a settlement to SEBI on July 29, 2026, demonstrating its commitment to regulatory compliance.
The June-quarter performance comes against a backdrop of strong demand across Kalyani Steels' key markets, according to Managing Director RK Goyal's interaction with CNBC-TV18 in June. As reported by CNBC TV18, Goyal stated the company was seeing healthy order flows from the automobile sector and exports of auto components. The demand conditions remained favourable, although the market was facing a shortage of material. The company has been operating at more than 100% capacity since more than one decade, as confirmed by Goyal.
The sustained demand has prompted Kalyani Steels to evaluate the next phase of capacity expansion, according to management statements reported by CNBC TV18. According to management, demand has remained strong not only from group companies but also from external customers and export markets. The company is part of the Kalyani Group and manufactures alloy and carbon steel products serving automobiles and engineering sectors. With the Ginigera plant back online and regulatory hurdles resolved, the company is positioned for improved sequential volume performance and operational stability.
